Castlelake secures $6.7 billion deal to take EasyJet private after months of haggling

EasyJet has reached an agreement in principle to be taken over by US investment firm Castlelake for approximately £5.2 billion, according to multiple reports. The deal would end the British low-cost carrier’s life as a publicly traded company and hand control to a private credit group that already holds a small stake in the airline.

The agreed price of £6.90 per share, reported by BBC, represents a significant climb from Castlelake’s earlier approaches. ft.com noted that the EasyJet board is minded to recommend the proposal, and a formal statement to the stock market requested an extension of the deadline to complete the transaction.

2 sources

ft.comEasyJet reaches outline agreement on £5bn takeover by CastlelakeBBCEasyJet reaches 'agreement in principle' over potential takeover

The breakthrough follows weeks of negotiations during which EasyJet rejected four earlier offers from Castlelake. The US firm manages funds that own a 2.14% stake in the airline, according to BBC.

"The airline had accused Castlelake of trying to acquire it 'on the cheap' before this latest proposal was put forward on 4 July."

The £5.2 billion valuation is higher than the £5 billion figure cited by The Guardian and ft.com, the latter of which described the deal as an outline agreement. The disparity reflects the revised bid that finally won over EasyJet’s board after months of resistance.

The GuardianEasyJet agrees to £5bn takeover by US investment firm

If completed, the takeover would remove Britain’s biggest low-cost carrier from the London Stock Exchange. The Guardian reported that Castlelake’s successful offer came after several rejected approaches and marks a major consolidation in the European airline sector.